International investors with interests in Egypt are watching the outcome of the constitution referendum with close attention.

Voting began on 14 January and will pave the way for parliamentary and presidental elections, bringing an end to the interim government that has been in place since former president Mohamed Mursi was ousted by the military in early July 2013.

The outcome of the vote will also provide a clearer indication of whether or not Defence Minister and Commander-in-Chief of the Egyptian Armed Forces General Abdel Fattah el-Sisi will run for president. He is expected to put his name forward if the referendum returns a strong yes vote.

Foreign companies hope the referendum will herald a new era of stability in Egypt, ensuring they can continue their current operations or invest in new ventures.

“We are looking forward to Egypt being stable again,” said Rashid al-Jarwan, executive director at the UAE-based Dana Gas, speaking at a forum promoting UAE investment abroad, held in Dubai on 14 January. He added that “host countries must respect contracts”, if they want to maintain lines of foreign investment.

Dana Gas is the GCC’s largest investor in the oil and gas sector in Egypt and has invested about $2bn in the country.   

It has struggled, however, to secure regular payments from Egypt, which, coupled with payment issues with Kurdistan, forced Dana Gas to restructure its debt in 2012.

In December last year, the Egyptian authorities paid AED194m ($53m) out of a total of AED1.2bn-worth of outstanding invoices. Discussions with Egypt to resolve further outstanding payments are continuing, with Dana Gas set to continue investments in the country.

The investor climate has already begun to improve in the months leading up to Egypt’s referendum.

At the beginning of the year, US ratings agency Fitch revised Egypt’s outlook from negative to stable, while maintaining its sovereign rating at B-.

On 13 January, Fitch then revised the National Bank of Egypt and Commerical International Bank’s outlooks from negative to stable, affirming the banks’ current rating of B-.

The decision to improve the country’s outlook was mainly driven by the billions of dollars of aid provided by Kuwait, Saudi Arabia and the UAE, which has eased pressure on reserves and the exchange rate, as well as boosting overall business confidence.

Out of the $15bn of money pledged, $10.7bn has been dispersed. At the end of December, net international reserves reached $17bn, which compares favorably with a low of $14.9bn in June 2013 just before the ousting of Mursi.

A reduction in violent protests in recent weeks also played a role in the rating agency’s decision. Since Mursi’s ousting, there have been numerous clashes between government supporters and members of the Muslim Brotherhood, who backed the previous regime.

More than 1,000 people were killed in a violent clampdown on the brotherhood in August, but in recent weeks the number of clashes has fallen. “The political scene has been calmed through a tough crackdown on the Muslim Brotherhood and restrictions on protests,” a note from Fitch read.